Personal Property vs. Real Property: What Changes?
| Factor | Personal Property (Current Title) | Real Property (After Conversion) |
|---|---|---|
| Legal document | State title certificate (TDHCA, HCD, DMV, etc.) | County deed or deed of trust |
| Financing available | Chattel loans (higher rates, shorter terms) | Conventional mortgages (lower rates, 30-year terms) |
| Property taxes | May be taxed separately from land | Combined with land on single property tax bill |
| Reversibility | Can convert to real property | Generally not reversible (permanent) |
| Estate transfer | Goes through state title agency | Goes through county recorder via deed |
When Conversion Makes Sense
- You want to refinance at lower conventional mortgage rates — lenders require real property status
- You're planning your estate and want the home and land to pass together by deed
- Your state's property tax treatment is more favorable for real property combined assessments
- You plan to sell and buyers want conventional financing options
When Conversion May Not Make Sense
- You plan to move the home (conversion makes it permanently fixed — moving it later becomes legally and practically complicated)
- The land has title issues or easements that would complicate the real property record
- Your state's property tax on combined real property would be significantly higher
General Conversion Process
- Confirm you own both the home and the land — Both must be in your name (or the same entity's name).
- Obtain a lien release — Any outstanding loan on the manufactured home title must be released before conversion.
- Complete an Affidavit of Affixture (or equivalent) — The name varies by state: "Affidavit of Affixture" (Arizona, Virginia), "Statement of Installation on a Foundation System" Form 433A (California), "Certificate of Permanent Location" (Texas via TDHCA). This document confirms the home is permanently attached to the land.
- Record the affidavit with the county recorder — The affidavit is recorded in the county where the property is located, creating a permanent real property record.
- Surrender the manufactured home title — Send the original title to the state title agency with a request to retire/cancel it. This completes the conversion.
- Notify the county assessor — The assessor needs to update the property record to reflect the combined land-and-home assessment.
Frequently Asked Questions
Yes, but the home must be on a permanent foundation and titled as real property. FHA Title II, USDA, VA, and conventional Fannie Mae/Freddie Mac loans are all available for manufactured homes that meet real property requirements. If the home is still titled as personal property, you are limited to chattel loans or FHA Title I, which typically have higher interest rates and shorter terms.
Costs vary by state but typically include: state title agency retirement fee ($10–$100), county recording fee for the affidavit ($15–$50), and a foundation inspection fee if required ($150–$500). Total is usually $200–$700. The ongoing financial benefit — access to lower-rate mortgages — often far outweighs this cost.
Most states require permanent foundation status before a title can be converted to real property. The specific requirements vary — some states require an engineer's certification, others accept a standard affidavit. HUD defines permanent foundation requirements in HUD Handbook 4930.3G, which is used as the standard for FHA loans.
Related: Title vs. Deed Explained · Lien Release · Texas Conversion · California Conversion